New John Lewis at Westfield Shepherd's Bush

John Lewis is on the brink of agreeing to open a huge new department store at the Westfield London mall in Shepherd’s Bush.

Company bosses are reportedly due to make a final decision within weeks after months of negotiation with the centre’s operator. The branch will “anchor” a £1 billion extension of Westfield.

The chain initially turned down the chance to open at the west London mall because it was concerned it would poach shoppers from its flagship on Oxford Street.

However, John Lewis bosses now admit that it underestimated the success of the mall and the West End’s ability to “co-exist” with the competition. “If we knew then what we know now then I think it’s unlikely we would have come to the same decision,” one said.

The Westfield extension, which will include 1,500 new homes, is a key element of the £5 billion White City regeneration project.

This will also see the development of a new campus for Imperial College and the BBC’s former Television Centre turned into a creative “village” with homes, offices and restaurants.